Fitch rates Cigna notes BBB

Fitch Ratings said it assigned a BBB rating to Cigna, Corp.'s $300 million 10-year senior unsecured notes.

The outlook remains negative.

Proceeds will be used for general corporate purposes.

The company's debt-to-EBITDA ratio is estimated to rise to 1.2 times from 1.1x in 2009.

Given the company's target debt to total capital of 30% or lower, Fitch said it believes proceeds from this issue will be available to help retire $448 million of debt due in 2011 and that the rise in financial leverage is only temporary.

Ratings reflect the company's well-established competitive position in the U.S. health benefits and group insurance business, the agency said.

The company's business mix, including group benefits and international operations, differentiate the company relative to other health and managed care peers by providing diversity to its earnings base, the agency noted.

Ratings also consider risks from declining values in the company's $3.4 billion commercial mortgage loan portfolio as of March 31, as well as its large unfunded pension liability and exposure to volatility in financial markets through its run-off variable annuity business, Fitch said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.